Hy-Capacity was growing, and running out of space in its warehouse. But it didn’t want to move just yet. A smart storage re-design helped it make the most of the current space.

Hy-Capacity has been servicing and manufacturing top-of-the-line tractor parts for over 40 years. The company’s stated mission is to set the market standards in product quality for new and re-manufactured agricultural equipment parts while providing an ethical and rewarding atmosphere where its employees can reach their maximum potential. One of Hy-Capacity’s core values is to challenge itself to grow by focusing on continuous improvement. That growth — along with its commitment to improvement — recently caught up with the firm, and resulted in a warehouse that was out of space. 

When Hy-Capacity started feeling the crunch in its warehouse, they contacted Crown Equipment Corporation and Conveyor Solutions, Inc., which brought in its long-time partner, Alpine Supply Chain Solutions. Together, they did a deep dive into the company’s storage and layout needs.  

The specific areas where Hy-Capacity needed help included identifying the right pick-and-reserve storage type for their current facility. They also wanted to develop layout alternatives that took careful account of capacity, productivity, flow, and safety concerns. Another important question was just how much longer they could realistically remain in the same location before finally running out of space.

Alpine began with a thorough Storage Type Analysis (STA), deploying Optricity’s OptiSlot software. An STA uses advanced mathematical algorithms that consider a product’s dimensions. It takes into account the physical characteristics of the warehouse environment such as slot configurations, pick path, and material handling equipment. The analysis also incorporates operational goals such as pallet building, seasonality requirements and retail groupings. In this way, it’s possible to identify the ideal size and quantity of active and reserve locations. The STA consists of five phases: Kick off & data review; data cleanse; site visit; and initial/final recommendations for storage and rack profiles. 

Alpine also conducted an ABC analysis, to determine the value of inventory items based on their importance to the business, using three years of raw sales data. This analysis ranked items on demand, cost, and risk, and helped Alpine group items into classes. Lines shipped by month, quantity shipped by month, and order profiles were all factored into layout requirements. 

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In the end, any product that required less than two pallets on hand would remain in active storage and any product that required more than two pallets on hand would be given active and reserve locations. A range of rack profiles was determined, which included bin shelving, hand-stacks, case flow, and pallet storage. Layout options were then designed and analyzed until a solution that best met the goals of Hy-Capacity was determined. 

Hy-Capacity’s new layout increased the facility from three warehouse zones to four, and increased overall storage capacity by a significant 85%. Before the project, Hy-Capacity was planning to move its operations into a new facility in 2022. However, the new layout and increased storage capacity mean that Hy-Capacity can remain in its current space until 2024. Disruption has been minimized, because new layouts are being implemented zone by zone, allowing Hy-Capacity to keep working without interrupting its operations.  

According to Chad Vaudt, Production Manager at Hy Capacity, “Alpine asked all the right questions and made meticulous use of our data to create a plan that bought us two more years in this location. Simply put, they went above and beyond, showcasing their ability to maximize space, equipment, labor, and control.”

With more time to find a location that can grow with them for years to come, Hy-Capacity can comfortably keep doing its part to help the farmers of this country keep feeding the world.  

Resource links:

Hy-Capacity: https://www.hy-capacity.com/

Alpine Supply Chain Solutions: https://alpinesupplychain.com/